Contrarian Indicator
"Be fearful when others are greedy, and greedy when others are fearful"
What is the Contrarian Indicator?
The Contrarian Indicator is an AI-powered trading signal system that identifies extreme market sentiment in cryptocurrency markets. Based on Warren Buffett's famous principle 'Be fearful when others are greedy, and greedy when others are fearful,' our indicator detects moments when crowd sentiment reaches extreme levels—historically the best times for contrarian traders to act.
How the Signal Detection Works
Our AI analyzes 150+ crypto news articles hourly, classifying sentiment for 20+ cryptocurrencies. When an entity's sentiment score drops below 25 (Extreme Fear) or rises above 80 (Extreme Greed), a contrarian signal is generated. These signals are then tracked for 24 hours to measure accuracy against actual price movements.
Why Contrarian Trading Works
Market psychology drives cycles of fear and greed. When sentiment reaches extremes, prices often overreact—creating opportunities for informed traders. Extreme Fear typically marks local bottoms as panic selling exhausts itself. Extreme Greed often marks local tops as FOMO buying reaches unsustainable levels.
Signal Accuracy Tracking
Unlike subjective indicators, we track every signal's performance. After 24 hours, we compare the signal price to the current price and determine if the expected move occurred. This gives you transparent, verifiable accuracy statistics—not just predictions, but proven track records.
Tracked Cryptocurrencies
We monitor sentiment for the top 20 cryptocurrencies by market cap, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, BNB, Cardano (ADA), Dogecoin (DOGE), and more. Each coin has its own sentiment score and signal history.
Trading with Contrarian Signals
Contrarian signals work best when combined with other analysis. Consider using them as one input alongside technical analysis, on-chain metrics, and fundamental research. Remember: extreme sentiment indicates probability, not certainty. Always manage risk appropriately.
Frequently Asked Questions
A signal generated when sentiment hits extremes—Extreme Fear (<25) suggests buy, Extreme Greed (>80) suggests sell.
Markets overreact at extremes. Fear marks bottoms; greed marks tops—historically, fading the crowd is profitable.
After 24 hours, we compare signal price to actual price to determine if the expected move occurred.
Varies by coin and period. Check the Signal History section for real tracked performance.
No—use signals as one input. Combine with technicals, fundamentals, and risk management.